Property market resilient despite Brexit uncertainty.
Average house prices have risen for a second month in a row, but it’s thought recent political upheaval could dent recent optimism.
According to Halifax, house prices edged ahead again in August, with the property market showing a “degree of resilience” despite intense political uncertainty.
The Halifax report states that average prices rose by 0.3% month-on-month, taking the annual rate of house price inflation to 1.8%. It was the second month of rising prices after four months of which they had been either flat or falling.
According to most indices prices have gone into reverse over the past year in the Capital. The leading cause of falls in the London market is thought the be down to Brexit fatigue.
However, in a trading update, the Berkeley group said that “pricing has remained stable and … there is good underlying demand for new homes.”
According to Halifax, the average price for a new home in the UK has risen to £233,541, up by nearly £4,000 since the same time last year. The property market is supported by strong employment levels and the continued shortage of houses for sale.
Halifax managing director Russell Galley said:
“Although the housing market will undoubtedly be influenced by events in the wider economy, it continues to show a degree of resilience for the time being. We should also not lose sight of the fact that the single biggest driver of both prices and activity over the longer-term remains the dearth of available properties to meet demand from buyers.”
One support for buyers is likely to be renewed falls in mortgage interest rates. Dramatic movements in gilt yields, which tumbled to record lows this week – with interest rates dropping to just 0.4% on 10-year bonds – are feeding through to lower fixed-rate mortgage deals.
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